SIPCHEM and Sahara Petrochemicals Co. put planned merger on hold

09-Jun-14

Saudi International Petrochemical Co. (SIPCHEM) and Sahara Petrochemicals Co. put on hold a planned merger that would have created a Saudi Arabian chemicals company with about US$5.7 bln in market value, as per Business Week. The companies said it would be difficult to proceed with the merger using a structure acceptable to both sides under the current regulatory framework, according to a statement. However, the two may revive talks in the future. Sipchem and Sahara in December proposed a share-swap merger and expected to sign a deal in the first half. HSBC Saudi Arabia Ltd., Zeyad S. Khoshaim Law Firm, Allen & Overy LLP, Jacobs Consultancy and Nexant were advising Sipchem. Sahara appointed Morgan Stanley Saudi Arabia, Al-Jadaan & Partners Law Firm, Clifford Chance LLP and IHS Inc.